Azul Linhas Aéreas Brasileiras (Azul), which closed its Chapter 11 bankruptcy case in February 2026, reported its 2025 results, with the Brazilian airline significantly cutting its full-year net losses compared to 2024.
40 percentage point improvement in net margin
Azul ended 2025 with revenues of R$21.8 billion ($4.1 billion) and operating expenses of R$18.2 billion ($3.4 billion), resulting in an operating profit of R$3.6 billion ($684.6 million), up 3.8% year-on-year (YoY) and an operating margin of 16.6%, which was down slightly compared to 2024’s operating margin of 18.0%.
However, with financial results of -R$3.8 billion ($722.6 million), the net loss was R$224.7 million ($42.6 million), a significant improvement compared to the net loss of R$8.1 billion ($1.5 billion) in 2024.
The net margin in 2025 was -1%, compared to -41.6% in 2024.
John Rodgerson, the Chief Executive Officer (CEO) of Azul, said that the airline ended the year with “another quarter of solid financial and operational performance, with a number of all-time records,” highlighting the positive outcome of its Chapter 11 restructuring that was completed in less than nine months.
“Through this comprehensive restructuring effort, we positioned Azul for long-term sustainable growth and significantly increased our financial resilience.”
Rodgerson highlighted that Azul emerged from the court-protected restructuring with a net leverage ratio below 2.5x, primarily because it reduced its loans and financing by R$6.7 billion ($1.2 billion) and aircraft lease liabilities by more than R$9.8 billion ($1.8 billion).
“With the restructuring successfully completed, we enter 2026 better prepared than ever. With our improved balance sheet, disciplined capacity growth, and unique network – 80% of our routes have no direct competition – Azul has a meaningful ability to react to macroeconomic challenges such as the recent increase in fuel prices.”
Slight unit revenue tailwind
During the year, Azul grew its capacity, measured in available seat kilometers (ASKs), by 10%, with an average network-wide load factor of 83.2%, an improvement of 1.6 percentage points. International load factors were 85.5%, 0.7 percentage points lower compared to 2024.
The average fare during the year was R$633.9 ($120.3), an 8% YoY increase, resulting in a 1.5% YoY improvement in passenger revenue per ASK (PRASK). Total revenue per ASK increased by 1.9% YoY.
At the same time, average yields contracted by 0.4% relative to 2024.
Cost per ASK and cost per ASK excluding fuel (CASK-ex) were 3.5% and 9.1% higher YoY, respectively.
According to Azul, it ended 2024 with a domestic passenger market share, measured in total revenue passenger kilometers (RPKs), of 27%, just behind two of its rivals, GOL and LATAM Airlines Brazil. In 2024, its market share was 30%.
Excluding Cessna-built aircraft, it had an operating fleet of 170 aircraft.
Potential fuel expense hit
While Azul did not provide an outlook for 2026 or Q1 2026, it noted that as of December 31, 2025, it had hedged approximately 3% “of its expected fuel consumption for the next twelve months by using forward contracts, options, and pre-determined pricing agreements with our fuel suppliers.”
If its fuel hedging has not changed since the end of the year, the Brazilian carrier could be facing very high fuel costs going forward. According to the International Air Transportation Association (IATA), during the week ending March 20, jet fuel prices rose by 12.6% week-on-week (WoW), an increase of 118.8% YoY.
In 2025, Azul’s fuel costs were down 5.1% YoY, with the average price of West Texas Intermediate (WTI) having been 16.6% lower YoY. Per ASK, fuel expenses were 7% lower, comprising over 31% of its unit costs.
Rytis Beresnevicius
